Amazon Bids on Disney Owned Sport Networks

Amazon puts in a first round bid on Disney owned Sports Networks

The “Amazon Sport Network” could soon be something you see on your TV. The giant online retailer has just put in a bid to buy more than 20 regional sports networks. CNBC reports that Disney currently owns the networks (Disney acquired the Networks from Twenty-First Century Fox), but is selling them.

Amazon is up against some big names in the television network space. Two companies, Tegna and Sinclair Broadcast Group, also put in a first round bid for the sport networks.

Sinclair Broadcast Group (SBG) owns nearly 200 local television stations across the country, and are widely considered one of the biggest media conglomerates around.

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Tegna is a main competitor of SBG, and is much, much smaller. They only own around 50 local television stations around the country.

With big hitter like Amazon and Sinclair Broadcast Group bidding on the 22 sports networks, it’s likely smaller companies like Tegna will fade out as the bidding rounds go on.

Sources tell CNBC that second round bids for the sport networks will likely happen soon, and potentially before the year is up.

You might be wondering why Disney doesn’t just keep these 22 sports networks and be the go-to sport TV network? Well, when Disney acquired Twenty-First Century Fox earlier this year, the Justice Department approved the sale on one condition: That Disney would sell (or in this case auction off) all the sports networks that came along with acquiring Twenty-First Century Fox.

The 22 networks have been estimated to be worth $14 Billion dollars. So, if Amazon does end up winning the bid war for all 22 networks, they will spending a very pretty penny. Amazon could also be the company to single handedly change the way consumers view and receive all sporting events and information. They would also put themselves into more direct competition with Hulu and Netflix when it comes to streaming content online.